Video summary

XTremeAutoTrader Options Trading 2015 10 06 13 20 38

Main summary

Key takeaways

Technology

Summary of the video (technological concepts & product features)

Purpose

The video demonstrates how XTremeAutoTrader can trade options symbols instead of an underlying stock symbol—i.e., it converts a standard strategy to automatically trade put/call options.

Core workflow in the product

  1. Open the XTremeAutoTrader console and enter the underlying symbol (example: Citigroup).
  2. Review the helper chart (it’s not deleted—only minimized).
  3. In Settings, configure strategy testing/trading speed:
    • Change bar type from 5 minutes to 10 seconds to accelerate execution.
    • Limit chart history to 100 bars.
  4. In the symbol settings, enable strategy execution using the default test strategy (which rapidly flips between short/long to showcase option switching).
  5. Configure the trade surrogate symbol so the system trades option symbols rather than the stock:
    • Select “stock options weekly”
    • Defaults to at-the-money (ATM) strikes and the nearest expiration date
    • Strikes can be adjusted relative to the underlying price (e.g., a configurable number of strikes from the last price); the demo returns to 0 strikes from ATM
  6. Lock settings for the symbol and return to the main console.

Connection / chart creation step (offline requirement)

The demo switches the platform to offline before creating the strategy chart:

  • The platform status changes show connection states (e.g., red for trading and data).
  • It mentions a diagnostic symbol failing/offlining if data drops.
  • Then the demo clicks Start/Stop to create the strategy chart (it stops after five cycles).
  • Finally, it goes back online by signing into TradeStation for a simulated account.

Live behavior being demonstrated

With 10-second bars, the system behaves quickly:

  • Positions shift rapidly (about every 10 seconds).
  • The strategy output shows options contracts changing automatically:
    • When the system is short, it uses puts
    • When the system flips to long, it uses calls
  • Position size may adjust during the oscillation (e.g., “20 shares” shown, oscillating like a sine wave).

Guides / tutorials mentioned

The video references a step-by-step demonstration covering how to:

  • Configure XTremeAutoTrader to trade options using any regular TradeStation strategy
  • Set ATM weekly options and the nearest expiration
  • Use offline mode to create the strategy chart
  • Run the strategy and observe automatic put/call switching

Main speakers / sources

  • Speaker: Dave Cunn (Emerald Trading Technologies)
  • Platform referenced: XTremeAutoTrader, TradeStation (simulated trading/data servers)

Original video